Library  of  the 
University  of  North  Carolina 

Endowed  by  the  Dialectic  and  Philan- 
thropic Societies 

Of  385. \-  rtSli^ 


EEPORT 


OF  THE 


DIRECTORS 


OF  THE 


FORTH  CAROLINA  RAILROAD. 


Digitized  by  the  Internet  Archive 

in  2012  with  funding  from 

University  of  North  Carolina  at  Chapel  Hill 


http://www.archive.org/details/reportofdirector1877 


•3.) 


[CIRCULAR.] 


Salisbury,  July  12th,  1877. 

To   the   Stockholder*  of  the  North  Carollim  Railroad  Com- 
pany : 

Resolved,  That  the  Board  of  Directors  be  requested  to 
examine  carefully  into  the  collaterals  deposited  by  the 
Richmond  &  Danville  Railroad  Company  to  protect  the 
lease,  and  to  report  to  the  stockholders  in  a  circular 
within  thirty  days. 

1st.  What  these  collaterals  consist  of ;  2nd,  giving  fuU 
description  of  same;  3rd.  reporting  market  value  of 
same ;  and  4th,  whether  or  not  the  collaterals  are  suffi- 
cient according  to  the  terms  of  the  lease.  Should  the 
collaterals  be  insufficient,  the  Directors  are  requested  and 
required  to  at  once  notify  the  Lessee  to  make  good  the 
collaterals  according  to  the  terms  of  the  lease. 

That  the  Directors  enquire  as  to  the  bond  given  ac- 
cording to  terms  of  lease  to  keep  up  the  Road,  etc.,  and 
report  fully  in  the  circular,  the  obligors  on  the  bond  and 
as  to  its  solvency. 

Greensboro,  Aug.  8th,  1877. 

Ln  obedience  to  the  foregoing  resolutions,  the  Board 
of  Directors  report  that  they  have  performed  the  duty 
imposed  and  find  deposited  with  the  Cashier  of  the 
First  National  Bank  of  Charlotte,  K  C,  the  following 


(4) 

bonds  as  collateral  security  for  the  semi-annual  payment 
of  one  hundred  and  thirty  thousand  dollars  ($130,000) 
lease  money. 

One  hundred  and  fifty-eight  (158)  first  mortgage  6  per 
cent,  bonds  of  the  North  Western  North  Carolina  Rail- 
road Company  of  one  thousand  dollars  ($1,000)  each,  due 
A.  D.,  1902,  with  coupons  attached  from  and  including 
Octobor  1st,  1873.  These  bonds  are  a  portion  of  five  hun- 
dred thousand  dollars  ($500,000)  first  mortgage  bonds  ot 
the  North  Western  North  Carolina  Railroad  Company, 
and  are  endorsed  by  the  Richmond  &  Danville  Railroad 
Company. 

Also  seventy  (70)  first  mortgage  6  per  cent,  bonds  of 
the  Richmond  k  Danville  Railroad  Company  of  one 
thousand  dollars  ($1,000)  each,  due  A.  D.  1890,  with 
coupons  from  May  1st,  1872. 

These  bonds  are  a  portion  of  two  million  dollars 
($2,000,000)  mortgage  bonds  of  Richmond  &  Danville 
Railroad  Company,  authorized  by  act  .  of  General  As- 
sembly of  Virginia,  dated  February  22d,  1807  :  mortgage 
dated  18th  of  June,  1867. 

We  find  in  the  hands  of  the  Treasurer  of  the  North 
Carolina  Railroad  Company  a  bond  of  the  Richmond  & 
Danville  Railroad  Company  for  one  hundred  and  thirty 
thousand  dollars  ($130,000)  under  seal  of  said  Richmond 
&  Danville  Railroad  Company,  and  signed  by  A.  S.  Bu- 
ford  as  President  therof,  which  bond  is  as  follows  : 

S130,000.  The  Richmond  &  Danville  Railroad  Com- 
pany, a  corporation,  incorporated  by  the  State  of  A'ir- 
ginia,  doth  hereby  acknowledge  itself,  its  successors  and 
assigns,  to  be  held  and  firmly  bound  to  the  North  Caro- 
lina Railroad  Company,  a  corporation  incorporated  by 
the  State  of  North  Carolina,  its  successors  and  assigns,  in 
the  sum  of  one  hundred  and  thirty  thousand  dollars 
($130,000)  for  the  true  and  faithful  payment  whereof  the 


» ■ 
6 


(5) 

Richmond  &  Danville  Railroad  Company  aforesaid  doth 
hereby  bind  itself,  its  successors  and  assigns  firmly  by 
these  presents.  Witness  the  signature  of  the  President 
of  the  said  Richmond  &  Danville  Railroad  Company, 
and  the  corporate  seal  thereof  this  12th  day  of  Septem- 
ber, 1871, 

The  condition  of  the  above  obligation  is  such,  that 
whereas,  by  deed  between  the  parties  hereto  bearing  date 
the  11th  day  of  September,  1871,  the  Xorth  Carolina 
Railroad  Company  aforesaid  did  lease  and  farm  out  for  a 
term  of  years  its  Railroad  roadbed,  superstructure  and 
other  property  in  said  deed  more  fully  set  forth  to  the 
said  Richmond  &  Danville  Railroad  Company,  and  in 
consideration  thereof  the  latter  company  did  by  the  deed 
aforesaid  covenant  as  follows  : 

And  for  the  consideration  aforesaid  the  said  party  of 
the  second  part  doth  covenant  with  and  oblige  itself  unto 
the  said  party  of  the  first  part  to  keep  the  said  Railroad, 
Roadbed,  superstructure,  depots,  buildings,  houses,  shops, 
engines,  cars,  fixtures,  and  other  property  of  every  kind 
and  every  part  thereof,  so  hired,  let,  "  farmed  out,"  and 
delivered  in  equaly  as  good  condition  and  repair  as  when 
so  delivered  to  it ;  or  to  keep  in  the  place  of  the  same  like 
things  of  equally  good  condition  and  repair  ;  and  to  return 
at  the  end  of  the  said  term  of  thirty  (30)  years,  or  at  the 
termination  of  the  said  lease,  to  the  said  party  of  the  first 
part  the  said  Railroad  roadbed,  superstructure,  depots 
houses,  buildings,  shops,  engines,  cars,  fixtures,  and  other 
property,  and  all  and  every  part  thereof,  in  as  good  con- 
dition and  repair,  as  when  so  delivered  to  said  party  of 
the  second  part,  or  other  property  when  any  part  of  said 
property  shall  be  worn  out,  destroyed,  or  abandoned,  as 
good  in  quality  and  substance  and  in  like  good  order  and 
repair,  and  for  the  faithful  keeping  and  performance  of 
the  covenant  and  obligation  last  aforesaid,  the  said  party 


(<5) 

of  the  second  part  doth  covenant  with  and  oblige  itself 
unto  the  party  of  the  first  part  to  execute  to  the  said 
party  of  the  first  part  a  bond  good  and  sufficient  at  all 
times  in  the  ability  of  its  makers  to  pay  in  the  sum  of 
one  hundred  and  thirty  thousand  dollars  ($130,000)  con- 
ditioned for  the  faithful  keeping  and  performance  of  said 
last  named  covenant. 

Now  if  the  Richmond  and  Danville  Railroad  Company 
aforesaid,  its  successors  and  assigns  shall  faithfully  keep 
and  perform  the  covenants  herein  above  recited,  then  the 
above  obligation  shall  be  void,  otherwise  remain  in  full 
force  and  virtue. 

THE  R.  &  D.  RAILROAD  COMPANY, 
By  A.  S.  Bi  ford,  Prcst. 


The  Directors  report  that  the  market  value  of  the  first 
mortgage  bonds  of  the  Richmond  &  Danville  Railroad 
Company  is  seventy-three  cents  on  the  dollar,  but  are 
unable  to  determine  the  market  value  of  the  one  hundred 
and  fifty  eight  thousand  dollars  ($1-38,000)  of  bonds  of 
the  North  Western  North  Carolina  Railroad  Company, 
as  they  do  not  find  them  quoted  upon  any  Stock  Board, 
and  further  state  that  in  their  opinion  the  collaterals  de- 
posited are  not  sufficient  according  to  the  terms  of  the 
lease,  and  have  therefore  adopted  the  following  resolution  : 

Resolved,  That  the  President  of  this  Company  notify 
the  Richmond  &  Danville  Railroad  Company  that  it  must 
at  once  deposit  one  hundred  and  thirtv  thousand  dollars 
($130,000)  in  cash,  or  its  equivalent  in  U  S.  bonds,  or 
bonds  which  sell  upon  the  Stock  Board  for  this  sum ;  or  if 
the  said  Richmond  &  Danville  Railroad  Company  elect 
so  to  do,  that  it  may  deposit  first  mortgage  bonds  of  the 
Richmond  &  Danville  Railroad  Company  or  first  mort- 


(?) 

o-age  bonds  of  the  Piedmont.  Railroad  Company  to  the 
amount  of  one  hundred  and  fifty  thousand  dollars 
($150,000)  in  market  value  ;  and  in  regard  to  the  bond  of 
one  hundred  and  thirty  thousand  dollars,  ($130,000)  the 
Directors  have  adopted  the  following  resolution  : 

Resolved,  That  the  bond  of  the   Richmond  &  Danville 
Railroad  Company  for  the  sum  of  one  hundred  and  thirty 
thousand  dollars  ($130,000)  for  the  keeping  of  the  fcorth 
Carolina  Railroad  in  good  condition  and  repair  and  for 
the  return  of  said  Railroad  in  good  condition  at  the  ter- 
mination of  the  lease  is  not  a  compliance  with  the  terms 
of  the  lease,  and  that  the  said  bond  is  not  good  and  suffi- 
cient in  the  ability  of  its  makers  to  pay  the  sum  of  one 
hundred  and  thirty  thousand  dollars,  ($130,000)  and  the 
Richmond  &  Danville  Railroad  Company  be  required  to 
give  good  and  sufficient  security  in  the  sum  of  one  hun- 
dred and  thirty  thousand  dollars  ($130,000)  for  the  faith- 
ful keeping  and  performance  of  the  said  covenants  of  the 

lease. 

Respectfully  submitted, 
By  order  of  the  Board' of  Director?  of  the  North  Car- 
olina Railroad  Company. 

"W\  L.  Thornburg,  Secy, 


UNIVERSITY  OF  N.C.  AT  CHAPEL  HILL 


00042093331 


FOR  USE  ONLY  IN 
THE  NORTH  CAROLINA  COLLECTION 


